If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.
The effect of overstating revenue expenditure in the profit and loss account is that the
Opening stock will be increased
Net profit will be understand
Net profit will be overstead
Opening stock will be decreased
Correct answer is B
As a general rule, an increase in any type of business expense lowers profit. overstating expenditure would decrease or understate the net profit
N45,000
N30,000
N25,000
N20,000
N15,000
Correct answer is E
No explanation has been provided for this answer.
N362
N310
N262
N240
Correct answer is A
No explanation has been provided for this answer.
Which of the following is the capital reserve of a company?
Accumulated depreciation
Retained profit
Share premium
Loss on forfeited shares
Correct answer is B
Capital reserve is made out of capital profits earned due to the sale of fixed assets at a price greater than its cost or profit on the reissue of forfeited shares. So Capital reserve is Created when there is capital profit i.e. profit on sale of assets or upward revaluation of assets. Retained capital is a capital reserve.
N1,368,000
N1,224,000
N1,024,000
N1,020,000
N964,000
Correct answer is A
No explanation has been provided for this answer.